New FCC Chairman Drops Bulk Internet Billing Ban for Apartments

Title: FCC Abandons Controversial Internet Service Ban for Apartments

In a shift in policy, the new head of the Federal Communications Commission (FCC), Brendan Carr, has chosen to abandon a contentious proposal by his predecessor, Jessica Rosenworcel. The proposal aimed to ban landlords and condo operators from imposing "bulk billing" arrangements for internet services, which essentially forced tenants to use a single, often subpar and expensive, provider.

Carr, in a recent statement, labeled the ban as "regulatory overreach" and argued that it could have significantly raised internet fees for Americans living in apartments, potentially by as much as 50%. He noted the plan was opposed by a broad and bipartisan coalition, including groups advocating for seniors, students, and low-income individuals.

Rosenworcel had introduced the ban in March, saying it would benefit consumers. She argued that tenants deserved the freedom to choose their broadband provider and weren’t fairly served by their buildings or complexes choosing services for them. However, the FCC received significant pushback, with cable providers, housing advocates, and a bipartisan group of 50 mayors urging protection for bulk billing due to its cost benefits.

Yeas ago, a social media user shared a firsthand experience that corroborated these concerns: "This approach failed miserably at an HOA I was a part of. Once the contract was signed by the HOA, the ISP had no competition for a period of time and they were awful."

In light of these responses, Carr’s decision to shelve the proposal appears to be a strategic shift in FCC priorities, favoring market-driven solutions over regulatory intervention. Yet, it remains to be seen how alternative solutions — if any — will be implemented to ensure fair competition and consumer protection in apartment internet services.

Michael Kan is a senior reporter at PCMag, focusing on cybersecurity and technology policy. He previously covered schools and cities for an outlet in Kansas City.